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Justices: Ex-wife must agree to lower sales price

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The Indiana Supreme Court unanimously held that a trial court had no authority to modify a property agreement made by ex-spouses and that the ex-wife is entitled by law to refuse to waive a provision that neither party had to accept a sale that was below specified minimums.

When Sean and Dee Anna Ryan divorced in 2008, they agreed to sell a property they had in Granger and a lake house in Michigan. Until the properties sold, Sean Ryan would pay 75 percent of the mortgages; Dee Anna Ryan would pay the remainder. In the agreement, the two could “bind” each other to accept a purchase price as long as the “resulting net proceeds” equaled at least $1.1 million on the Granger house and at least $300,000 on the lake house.

For two years, the properties hadn’t sold, so Sean Ryan sought a motion for relief from judgment pursuant to Indiana Trial Rule 60(B)(8) so that the court could order that the properties will be sold at the prevailing fair market value and he could accept a price lower than stated in the agreement without his ex-wife’s consent.

The trial court denied the request, but the Court of Appeals ordered the court to hold an evidentiary hearing on the motion.

The justices agreed with the trial court that it didn’t have authority to modify the property-distribution agreement without Dee Anna Ryan’s consent. The agreement was incorporated and merged into the divorce decree and did not provide for, nor did the parties consent to, modification, Justice Frank Sullivan wrote.

A court can have authority to resolve a dispute over the interpretation of a settlement agreement or property-division order, he noted, and the court’s task would be one of contract interpretation.

In the instant case, the justices found that the Ryans’ agreement as to the disposition of their properties is unambiguous. As a matter of contract law, Dee Anna is bound to agree to the sales prices for the properties that would produce net proceeds less than those stated in the agreement.

“We conclude by saying that, in writing this opinion, we have been struck by the recurrence of several fact patterns that have been avoidably problematic – the use of specific dollar amounts rather than percentages, the failure of a QDRO’s terms to conform to ERISA requirements, the failure to provide a contingency if the marital residence cannot be sold – and trust that practitioners and judges alike will contemplate them in their work as well,” Sullivan wrote.

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  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

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